Archive · 27 Jul 2026
Kiwi Dollar to Strengthen Against Euro
The New Zealand dollar, also known as the kiwi, is expected to get stronger against the euro.
This is because the New Zealand central bank is likely to raise interest rates more than the European Central Bank.
Higher interest rates make a country's currency more attractive to investors.
The kiwi could gain as much as 3.2% against the euro in the next three months.
The European Central Bank might raise rates in September, but many think that will be the end of their rate hikes.
Meanwhile, New Zealand's economy is showing signs of improvement, which could lead to more rate hikes there.
The kiwi has already gained against the euro this month, and some experts think it could keep going up.
The New Zealand dollar is expected to rise against the euro due to higher interest rate expectations.
The Reserve Bank of New Zealand is predicted to raise rates by more than a percentage point in the next year.
The European Central Bank is expected to raise rates by about 75 basis points, with a potential end to tightening in September.
New Zealand's economy is showing signs of strengthening, supporting further RBNZ rate hikes.
The EUR/NZD currency pair has fallen 2.5% this month, with potential for further downside.
- Who
- Strategists at Macquarie Bank Ltd., Westpac Banking Corp., and Canadian Imperial Bank of Commerce
- What
- Prediction that the New Zealand dollar will strengthen against the euro due to interest rate expectations
- When
- Over the next three months
- Where
- Global foreign exchange markets
- Why
- Widening gap in expected interest rates between the Reserve Bank of New Zealand and the European Central Bank
Bullish on Kiwi
Cautious on Euro
Interest Rate Expectations
Bullish on Kiwi
The Reserve Bank of New Zealand is expected to raise rates by more than a percentage point, making the kiwi more attractive.
Cautious on Euro
The European Central Bank is expected to raise rates by about 75 basis points, with a potential end to tightening in September.
Economic Indicators
Bullish on Kiwi
New Zealand's economy is showing signs of strengthening, supporting further RBNZ rate hikes.
Cautious on Euro
The ECB may need to consider rate cuts to support growth, which could weigh on the euro.
- Currency Pair
- EUR/NZD
- Predicted Kiwi Gain
- 3.2% against the euro in the next three months
- RBNZ Rate Hike Expectation
- More than 1 percentage point in the next year
- ECB Rate Hike Expectation
- About 75 basis points in the next year
- Current EUR/NZD Level
- 1.96
- Potential EUR/NZD Level
- 1.90 in the next three months
- Recent EUR/NZD Decline
- 2.5% this month